The arrival of foreign banks in Latin America – to the point where in some countries they own a majority of the banks – has led to solid, solvent banking systems. There is one problem, though: they are not doing their job. And an outcry about this is beginning that could lead to legislative change.
Have countries in which foreign banks have established themselves benefited? Not as much as they could have if, as we believe, a bank’s main role is to channel money from depositors to consumers and businesses to make an economy grow and prosper, as long as this allows the banks decent returns. This is especially true of Latin American markets, where other sources of finance are scarce.
